Financials: Jun. Bonds are currently 16 lower at 117'30. Yesterday the market rallied sharply after Greek Bonds were downgraded to junk status and Portugal's credit rating was downgraded a couple of notches. The market rallied as high as 118'24 in a flight to quality giving us a chance to sell the market in the 118'12 resistance area. If you went short either take the short term profit or use a protective buy stop at your break even level. Near term support remains in the 116'24 area. We remain long the Jun. Bond 114'00 put.
Grains: Yesterday beans closed 16 cents lower, Corn 4 lower and Wheat 2 higher. Over night Beans were 4 higher, Corn 5 higher and Wheat 1 higher. The market broke yesterday partially in sympathy with most other markets due to the European debt crisis which caused a stronger dollar and good progress on plantings. We remain long out of the money call spreads in Nov. Beans. I still like the idea of going long July Wheat on a break to the 470'0 level if the market allows.
Cattle: Yesterday Live and Feeder Cattle traded sharply lower after trading higher early in the session in sympathy with most other commodities after the lowering of European debt ratings. Producers who took advbantage of yesterdays early rally by selling out of the money calls should once again consider covering those calls on a lower market if their strike price is trading under 30 points. For speculators, support in Jun. Cattle is now the 92.70 level and resistance 95.70.
Silver: July Silver is currently 18 cents lower at 17.93. This market continues to fail at resitance above the 18.40. Near term support remains at 17.40 with longer term support at 16.40. I remain on the sidelines.
S&P's: Jun. S&P's are currently 5.50 higher at 1186.50. I'm sure you are aware of yesterday's market break caused by the reasons stated in my earlier comments. If you went short early yesterday either take profits or use a protective buy stop at 1197.00. Near term support of 1191.00 has been penetrated. The next level of support is the 1174.00 level.
Currencies: As of this writing the Jun. Euro is 28 higher at 1.3238, the Swiss 21 higher at .9236, the Yen 105 higher at 1.0638 and the Pound 35 lower at 1.5219. I still like the short side of the Yen on rallies. The Jun. Dollar Index is currently is 3 lower at 82.28. The Dollar Index is currently trading in the 82.30-82.50 resistance level, making me reluctant to sell the European currencies.